The NCUA filed suit late last month against David Addison, former CEO of Texans Credit Union, accusing him of breach of fiduciary duty and gross negligence that led to the $1.4 billion credit union’s April 2011 conservatorship.
CNBS LLC says David Addison is one of several partners in holding company that bought 51% stake.
Chairman Ben Bernanke made history this week when he said the Fed would keep long term rates low until unemployment drops to 6.5% or below.
JPMorgan Chase’s $2 billion failed credit risk hedge is different than the investments that led to the corporate credit union crisis. However, there are also similarities, according to industry investment experts. Specifically, overleveraging and a drive for income that compromised risk management.
Credit unions will have to find another place to invest up to $1 billion worth of agency mortgage backed securities, according to an industry expert.